Intergenerational Economics WS07/08

[ Overview | Course Outline | Literature]


Course material  

Login information to course material will be given in class



    Part I: The public finance perspective


I) Pension Systems

1) Introduction

1.1 Plan of the course (1st part)

1.2 Demographic development

1.3 Characteristics of pension systems / classification

1.4 Reform activities in selected countries

2) Mechanisms

2.1 Introduction: OLG

2.2 The link between internal and market rate of return

3) Efficiency

3.1 Implicit taxes

3.2 Implicit debt

3.3 Does transition to a fully funded system promise Pareto improvement?

4) Open Economy

4.1 How does globalisation affect (harmonized) pension systems?

4.2 Distortions due to unharmonised pension systems

4.3 Efficiency of pension systems with (im)perfect mobility

4.4 Unskilled migration: A burden or a boon?

4.5 Beveridge versus Bismarck

5) Political Economy

5.1 General considerations

5.2 Basic voting model

5.3 Voting model with ageing

6) Human Capital

6.1 Pension systems and education

6.1.1 Social security systems as a financing device for education

6.1.2 The role of education with mobility

6.2 Pension systems and fertility

II) Public Debt

1 Introduction

2 Different traditional views

3 To tax or to borrow?

4 Ricardian equivalence

5 Why Ricardian equivalence may not hold

6 Political economy reasons for public debt


    Part II: The family perspective


3.    Intergenerational and Interhousehold Economic Links

    3.1    Introduction

    3.2    Altruism

    3.3    More sophisticated models with altruism

    3.4    Transaction cost approach

    *3.5    The socioeconomic determinants of children outcomes


4.    Human Capital: Education and Health

    4.1    Introduction

    4.2    The Intertemporal Character of Educational Decisions

        4.2.1  The Theory of Human Capital

        4.2.2  Life-Cycle Theory: Dynamic Optimization

        4.2.3  Incentives for Public Education in a PAYG Pension System

    4.3    Credit Constraints and Education Policies

       4.3.1  Theory

       4.3.2  Evidence on Credit Constraints

       4.3.3  The Life Cycle of Education Policies

       4.3.4  Pensions and Public Education: Links between Intergenerational Transfers

    4.4    Intergenerational Mobility

        4.4.1  Theory

        4.4.2  Measuring Intergenerational Earnings Mobility

        4.4.3  Measuring Intergenerational Educational Mobility

        4.4.4  Nature vs. Nurture

        4.4.5 Biology as Destiny - Intergenerational Transmission of Birth Weight

    *4.5   Public vs. Private Financing and Provision

     *4.6   The Trade-off between Child Quantity and Quality